According to this Report, after about 2 years of executing Decision No. 11/2017/QD-TTg on stimulating the development of solar power projects, there are 84 solar power projects with a total capacity of about 4,500MW being put into operation, contributing to the energy supply and adding clean energy sources to the power system. However, this mechanism has revealed some drawbacks such as: The feed-in tariff is higher than the retail tariff, the massive development causes a lot of difficulties in evacuation of electricity output.

Therefore, the Prime Minister has requested the Ministry of Industry and Trade to reconsider the development of solar power with a reasonable proportion and in conformity with the expansion progress of transmission grids; introducing an incentive level so as to harmonize interests of the Government, investors and people; providing further incentives to rooftop solar PV development; and not introducing many price zones, etc.

The Prime Minister also asked the Ministry of Industry and Trade to implement an auction scheme for solar power projects, piloting in 2020 so that this scheme can be completed and widely applied from 2021, ensuring transparency and in line with market prices; to coordinate with Vietnam Electricity and the Commission of Management of State Capital in studying and proposing a mechanism to allow private investors to invest in the transmission system.

The Ministry of Industry and Trade will complete the draft incentive mechanism for solar energy development and submit to the Prime Minister before September 15, 2019.

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